Although reports continue to suggest fighting persists in the east of Ukraine, recent ceasefire agreements appear to be taking a tentative hold and are a positive step when compared to earlier in the year. The impact of conflict in the Donbas, the easternmost region of Ukraine bordering Russia, has undoubtedly been traumatic for the country, but how has it affected the agricultural sector?

The Renewable Fuels Association’s 20th annual National Ethanol Conference was jam-packed with fascinating discussions over issues and obstacles the US ethanol industry faced in 2014 and is expecting in 2015, including whether it’s possible to top a record for exports.

There has been considerable discussion of late about the lack of volatility in some key trading markets, and the impact that is having on trading groups, their profitability, and thus their interest in remaining engaged in certain markets.

The argument has been that low or relatively flat prices have driven some key trading firms — a fair number of which are big banks — from a number of commodity markets, including energy commodities. Some believe the liquidity of some of these markets has taken a hit as counterparties have left, both because of reduced profitability but also as a result of regulatory pressures.

That the CEO of the Renewable Fuels Association would come out fighting after the 2013 annus horribilis was to be expected. When Bob Dinneen, a man they’ve come to call the Reverend in these parts because of his full throttle evangelisin’ on the blendstock’s position in the USA, took the stage to deliver the keynote opening address to the 2014 National Ethanol Conference last week, the packed auditorium knew broadly what to expect.

Ethanol makers have had a tough year despite the soaring price of crude and products that have put ethanol’s gasoline blending abilities in high demand.
The most recent sign of trouble came last week, when big producer VeraSun, considered a bellwether for the industry, effectively put itself up for sale after some hedges went south.